On December 29, Guangzhou Haozhi Industrial Co.Ltd(300503) shares plunged nearly 12%. The previous day, Guangzhou Haozhi Industrial Co.Ltd(300503) announced that two executives, including the actual controller of the company, were placed under residential surveillance at the designated residence of relevant authorities on suspicion of manipulating the securities and futures markets.
The reporter noted that Guangzhou Haozhi Industrial Co.Ltd(300503) was involved in Ye Fei’s “market value management” event, and the stock price fluctuated seriously at the beginning of the year. According to the disclosure of Shenzhen Stock Exchange, during the period from December 4, 2020 to January 13, 2021, Guangzhou Haozhi Industrial Co.Ltd(300503) closing price decline deviation reached – 72.42%, and the cumulative purchase amount of natural persons accounted for about 77%.
Stocks with sharp ups and downs often attract a large number of individual investors. The reporter of Securities Daily further combed and found that 30 listed companies of A-Shares were “named” by the exchange during the year, and issued an announcement of serious changes in share prices. It is noteworthy that individual investors have become the main buyers of the stocks of listed companies “named”, and the cumulative amount of buying such stocks during the change period accounts for more than 70%. Among them, the purchase amount of individual investors in 10 listed companies accounts for more than 90%.
Individual stocks with serious abnormal fluctuations usually imply great risks, but the enthusiasm of individual investors to “buy” seems to be unaffected.
After combing the data of East Money Information Co.Ltd(300059) choice and the data disclosed by Shanghai and Shenzhen Stock Exchange, the reporter found that since this year, 30 listed companies in the A-share market have issued announcements of serious abnormal fluctuations in stock trading, suggesting relevant risks. From the trading situation during the period of severe abnormal fluctuations, only one listed company’s cumulative purchase amount of natural persons accounted for less than 50%, and the remaining 29 companies were more than 50%.
Specifically, during the change period, the cumulative purchase amount of natural persons of 20 listed companies accounted for more than 70%, of which 10 were more than 90%, and the highest was 99.19%. In other words, during the period of sharp fluctuations in the share prices of the above 10 listed companies, more than 90% of the market buying funds come from individual investors, and it is rare for institutional investors to buy. This also means that individual investors have become the main driver of the stock price fluctuations of the above-mentioned companies.
From the perspective of subdivision structure, natural persons are divided into small and medium-sized investors and other natural persons. The data show that during the serious changes of the above 30 companies, they showed the characteristics of “small and medium-sized investors are the most active”. There are as many as 21 companies in which the cumulative purchase amount of small and medium-sized investors accounts for more than half of the total purchase amount of natural persons. Among them, the proportion of small and medium-sized investors in four companies is more than 80%.
Why do individual investors, especially small and medium-sized investors, prefer to buy volatile stocks?
“The purpose of individual investors actively buying the above types of stocks is to obtain high returns under high waves. In order to maximize capital appreciation, they may invest their funds in high-risk serious transaction stocks.” Yan Kaiwen, chief strategic analyst of Huaxin securities, said in an interview with the Securities Daily that the investment behavior of a small number of small and medium-sized investors is blind to a certain extent, with serious abnormal fluctuations, large profit and loss range and strong uncertainty of stocks, and some small and medium-sized investors with relatively insufficient financial knowledge may ignore risks in order to pursue high returns.
“Some individual investors pay more attention to short-term earnings. There will be significant stock price fluctuations in the short term for seriously changed stocks, or it will attract individual investors to enter the game, but the risk of this highly volatile transaction is often much greater than the earnings.” Wang Weijia, general manager of Beijing Sunshine Tianhong asset management company, told our reporter.
Behind the serious changes in stock prices, there are often hidden violations of laws and regulations. The Guangzhou Haozhi Industrial Co.Ltd(300503) of executives suspected of manipulating the securities and futures markets is a typical example.
“In the absence of significant changes in fundamentals, if the share prices of listed companies fluctuate seriously and abnormally, it is likely that someone behind them is suspected of manipulating the securities market or causing investors to face great risks.” Lawyer Li Jian, deputy director of Zhejiang Yufeng law firm, told the reporter of Securities Daily.
Li Jian further said that the stock prices of listed companies suddenly fluctuate abnormally, which may be suspected of securities market manipulation, insider trading and illegal information disclosure of listed companies. Investors should pay close attention to the announcements of listed companies and invest rationally.
Yan Kaiwen said that the income and risk match each other. Investors should invest according to their own risk tolerance and do not blindly chase higher. In view of the value, periodicity and growth of the underlying stock, we should have a certain understanding and judgment, and reduce the non systematic risk by diversifying investment and adjusting reasonable positions. “Therefore, for ordinary small and medium-sized investors, focusing on the long-term investment logic can reduce the risk to a certain extent.” Li Jian reminded.
(Securities Daily)
